NEW YORK, July 18 (Reuters) - Qualcomm Inc cut itsrevenue and earnings forecast for the current quarter onweaker-than-expected demand for semiconductors, but investorstook heart as it said that sales would improve for a strong lastquarter of 2012.

Qualcomm shares rose 6 percent in late trade after theleading provider of chips for cellphones said it expects a"strong December quarter" as it will have overcome a shortfallin its advanced chip supply by year end.

The San Diego-based company is expected to supply chips forthe next Apple Inc iPhone model, which analysts widelyexpect to go on sale in time for the holiday shopping season.

Qualcomm said it expects big smartphone launches to boostchip sales in the holidays despite a weaker economic outlook.

It said that lower-than-expected sales in the currentquarter would be mostly due to customers' cutting inventory toprepare for new holiday product launches.

"We think there's a number of flagship devices that phonemanufacturers will be launching. Like last year the consumeruptake was quite strong so we're expecting a similar situationthis coming December" Chief Financial Officer William Keiteltold Reuters, but declined to name the phone makers.

"They're saying everything they can to point to Applewithout saying Apple," said Charter Equity Research analyst EdSnyder. "People are looking past the current quarter into theholiday season and they like what they see."

28 NANOMETER RAMP UP

Qualcomm also said it had made big progress in expanding itschip manufacturing capacity. The company warned in April that itwould lose out on a lot of revenue as it was unable to meetdemand for advanced chips due to a 28 nanometer manufacturingcapacity shortfall at contract manufacturer TSMC.

Keitel said that Qualcomm is now ramping up production of 28nanometer chips with four different manufacturing companies.Analysts said this was good enough news that it distractedinvestors from the weakness in the current quarter.

Investors also appeared to overlook Chief Executive PaulJacob's admission on a conference call that it had to informU.S. regulators that it gave gifts or other benefits to peopleassociated with state-owned companies or agencies in China.

The finding was part of an investigation that Qualcomm saysarose from a "whistleblower's" allegations made in December 2009to the company's audit committee and regulators.

Qualcomm said it believes the total monetary value of thebenefits in question to be less than $250,000. Jacobs said hewas unable to predict the outcome of the investigation.

OUTLOOK CUT, AN INVENTORY ISSUE

Qualcomm cut its revenue target for its fiscal full year2012, which ends in September to a range of $18.7 billion to$19.1 billion from $18.7 billion to $19.7 billion.

It cut its non-GAAP earnings per share target to a range of$3.61 to $3.67 from its prior target of $3.61 to $3.76.

Another analyst, James Faucette of Pacific Crest Securities,said investors were brushing off the worse-than-expected fiscalfourth-quarter outlook and focusing on the fact "that the rampin 28 nanometer chips is happening."

Qualcomm posted a profit of $1.207 billion, or 69 cents pershare for its second quarter ended June 24, compared with aprofit of $1.035 billion or 61 cents per share in the year-agoquarter.

Qualcomm shares rose to $59.28 in late trade after closingat $56.05 in regular Nasdaq trade. The stock had fallen 16percent from its $66.99 close on April 18 just before it warnedof the 28 nanometer shortage.